Effective Request Letter to Cancel Insurance Policy

When writing a request letter for cancellation of a policy, you’re going to want to do it as politely as possible. In the case of an insurance policy, you have the right to cancel it at any time during the policy period. But it must be done in writing. Insurance is an important financial tool to ensure assistance in times of need.

However, there could be various personal to professional reasons to want to request an insurance policy cancellation.

Let’s explore more about policy cancellation and what to consider when writing a letter for cancellation of the insurance policy.

What Is an Insurance Cancellation Letter?

An insurance cancellation letter is written when a person decides they do not want to keep paying premiums to the concerned insurance company. The right to cancel a policy is typically not restricted by insurance company policies in any way.

Before writing the cancellation letter, you must review the policy to see whether there are any rules regarding the cancellation and notice.

You will find details on how to cancel the policy, how to give notice, and to whom to send the cancellation letter. You must adhere to any explicit cancellation instructions mentioned in the policy.

A man writing on a paper placed over a black table
Photo by Scott Graham on Unsplash

Why Write a Letter for Cancellation of Policy?

When canceling an insurance policy, you must formally write a letter following the insurer’s procedures. There are many reasons to write a request letter for cancellation of a policy.

It could be that the insurance premiums you pay seem too high for you. Or your business has changed, and you require new coverage. You may also need to cancel a policy if you’re moving out of state and your insurer doesn’t offer policies in your new location.

Bundling various insurance into a single, less-priced policy could be another reason for cancellation.

Tips to Write a Request Letter for Cancellation of a Policy

Writing an insurance cancellation letter might be intimidating. But it truly doesn’t have to be a complicated process. To begin crafting your insurance cancellation request letter, here are some effective tips:

  • Carefully go through the policy to know the proper cancellation procedure.
  • Make it clear that you want to stop paying premiums and wish to cancel the current policy.
  • You should specify that the premium payment fees should be discontinued immediately.
  • Provide your policy number clearly to make it simpler to track your previous payment history.
  • Try to directly address the letter to the concerned authority.

Insurance Cancellation Letter Template

Since insurance policies are contracts, cancellation of a policy must be made in writing. You must send a letter giving your insurer a formal notice of cancellation to withdraw from the contract. Putting your cancellation request in writing protects your interests by giving written confirmation of the cancellation request. Here’s a quick template as a starting point to help you write a policy cancellation letter:


[Your address]



[Recipient’s Address]

Dear [Recipient’s Name],

I am writing this letter as a formal request to cancel my life insurance policy with your company. My policy number is [Policy no], and please make it effective from [mention date].

I further request that you cease all charges associated with the premium and return the payments made earlier. This request letter should be resolved with immediate effect and processed within 30 days from the date of this letter.

I expect urgent action in this matter, and please contact me as soon as you have any information regarding the cancellation of this policy.

Yours sincerely,

[office’s name]

[your name]

[your designation]


If you are ever in a situation where you need to cancel your insurance policy, then this insurance cancellation letter template is for you.

You might need to cancel your insurance policy to switch to a new, cheaper plan, or your current insurance company is charging too much. Whatever might be the reason, this article can help you write a policy cancellation letter smoothly.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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